A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company.The top managers should
A) decentralise decision-making authority.
B) appoint lawyers to make business decisions.
C) train first-line managers to make these decisions.
D) exercise centralised decision-making authority.
E) consult investors when making important daily decisions.

Question

Quizplus · Accepted Answer

In a biotechnology company, decisions related to research, development, and commercialization of products often have long-term impacts and require centralized decision-making authority to ensure consistency with the company's overall strategy and objectives. Decentralizing decision-making authority may lead to inconsistent decisions and ultimately weaken the company's competitive position, whereas training first-line managers may not be sufficient to make critical decisions without the guidance of senior management. Appointing lawyers to make business decisions may not always align with the company's goals and values, and consulting investors for daily decisions may lead to a short-term focus on shareholder value rather than the company's long-term sustainability.

A Biotechnology Company Is Constantly Faced with Important Decisions That